MSE News: MPs to vote over payday loan curbs

Former_MSE_Guy · 20 January 2011 at 2:34PM

This is the discussion thread for the following MSE News Story:

"Expensive payday lending will be the subject of a House of Commons debate after a campaign by cross party politicians ..."

Read the full story:
MPs to vote over payday loan curbs

Ken68 · 20 January 2011 at 5:23PM

It will be interesting to see who votes against this measure.
David Cameron himself has said that the next Westminster scandal will be the lobby brigade.

veridisa_2 · 20 January 2011 at 6:24PM

"One in ten people frequently struggle to make it to payday with money tending to run out on the 20th day of the month, adds Creasy's office."

so the govt put vat up.
petrol goes up
council tax goes up
wages dont keep up with inflation

20th day! soon some people wont make it till day 15.payday loans are a symptom not the problem

prettypaula · 20 January 2011 at 6:35PM

i agree, ive not had a payrise for 2 years. im a manager yet they have given payrises to all levels below me.

meanwhile my living costs have risen dramatically!

RAS · 20 January 2011 at 7:15PM

Lobby your MP and ask them to join the list of signatories - find them here http://www.parliament.uk/mps-lords-and-offices/

Snakeeyes21 · 20 January 2011 at 10:47PM

One of mr martins quotes
"Yet cap the cost and charges are limited. For example, if you borrow £1,000 from a payday lender, the maximum charge including all fees could be set at £200."

Clearly Martin is out of touch of reality again, this already happens, most payday lenders charge £20 per £100, which is exactly the same.

Unless he is suggesting that if a borrower defaults they cant rack up any charges more than £200, thats hardly fair on the lender who has had money stolen from them, who will spend countless hours chasing for a settlement.

Or is he suggesting that they can borrow the £1000 for any period of time for £200? hardly a good return on a risky investment if the borrower decides to not pay it back for a year or two.

I for one am happy with payday loan companies, it seems those that arent are those that wont ever have a need to use them, I know I will be more than happy to pay a payday loan compny £20 to stop a bank charging me £80 in fees for bounced direct debits.

It seems the mse team jumped on the bank charges band wagon, now thats a dead duck they are setting their sights on another perfectly legitmate sector which will no doubt !!!! things up for those of us who use them in the correct manner, all because a minority are unable to look after their own finances and need their ar*es wiped 24/7

Browntoa · 20 January 2011 at 10:50PM

assume they won't address the problem of people who can only borrow from these types of lenders ??

will it just force them into the arms of "Big Harry" your friendly local Loan Shark at even higher rates ??

HairY · 21 January 2011 at 3:55AM

It seems to me that, to pay-day loan companies, the cost of lending is negligible when weighed against the cost of defaults and non-payment. If 1 in 6 customers default on their loan then you need to charge 20% just to stay afloat...regardless of term.

MSE News: MPs to vote over payday loan curbs

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